Question 1 of 3 Which of the following are benefits of using standard costing As a way to place blame on managers or employees Useful in setting selling prices Simplifying cost procedures and expediting reports Simplifies inventory costing Establishing budgets Supporting cost reduction measures Contributes to management control 00

Question 1 of 3 Which of the following are benefits of using standard costing As a way to place blame on managers or employees Useful in setting selling prices Simplifying cost procedures and expediting reports Simplifies inventory costing Establishing budgets Supporting cost reduction measures Contributes to management control 00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 18E: Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull...

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An inventory system that organizations use to increase efficiency and decrease waste is ______________________________. corporate social responsibility just-in-time manufacturing total quality management Lean Six Sigma
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are examples of other factors that managers should consider in setting product prices?
Although the cost-plus approach to product pricing may be used by management as a general guideline, what are examples of other factors that managers should consider in setting product prices?
Discuss how financial data prepared on the basis of variable costing can assist management in the development of short-run pricing policies.
Which of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.
Which of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managers
1. If the business purchases goods for resale purposes, such purchases are charged to?a. Expenses accountb. Sales accountc. Purchases accountd. None of the above 2. Costing information can be used for?a. Budget control and evaluationb. Determining standard costs and variancesc. Pricing and inventory valuation decisionsd. All of the above
1. Which of the following is an advantage of the budgeting process? a. It forces management to focus on the past and not be distracted by the day-to-day operations of the business. b. It can communicate to employees specific information about their past performance to determine their promotion prospects. c. It can communicate to employees specific information about their past performance to determine their promotion prospects. d. It can communicate to employees information about their performance expectations in the period ahead. 2. Which one of the following statements regarding changing inventory costing methods is true? a. A change in inventory methods can be justified if the change is made to better match profits with revenue b. Changing inventory costing methods violates comparability c. One place that the reader of an annual report would be able to identify that a company changed inventory costing methods is the statement of shareholders' equity d. Changing inventory costing…
1- What does the EOQ decision model help managers do? 2- Why are companies using just-in-time purchasing? 3- What are the main features of JIT production? 4- How does backflush costing simplify traditional inventory costing? 5- How is lean accounting different from traditional costing systems?
Management accounting guidelines. For each of the following items, identify which of the management accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes. 1. Analyzing whether to produce a component needed for the end product or to outsource it. 2. Deciding whether to compensate the sales force by straight commission or by salary. Adding the cost of store operations to merchandise cost when deciding on product pricing, but only including the cost of freight and the merchandise itself when calculating cost of goods sold on the income statement. 3. Considering the desirability of purchasing new technology. 4. Weighing the cost of increased inspection against the costs associated with customer returns of defective goods. 5. Deciding whether to buy or lease an existing production facility to increase capacity. 6. Estimating the loss of future business resulting from bad publicity related to an environmental…
1. Why are indirect costs not directly traced to cost objects in the same way as direct costs? 2. Define cost tracing, cost allocation, allocation base and cost driver. 3. Distinguish between arbitrary and cause-and-effect allocations. 4. Explain how cost information differs for profit measurement/inventory valuation requirements compared with decision-making requirements. 5. Explain why cost systems should differ in terms of their level of sophistication.
S1: Abnormal spoilage is considered a period cost.S2: Backflush costing requires fewer allocations than traditional accounting methods.S3: Lean manufacturing and just-in-time (JIT) systems are both concerned with reduction of inventory levels. Group of answer choices True; False; False True; True; False False; True; True False; False; True False; False; False True; True; True